Was CAR...Avis Budget a short squeeze today??

Discussion in 'Options' started by Cabin111, Sep 27, 2021.

  1. Cabin111


    I can't tell if it's a squeeze or if it's because of the lack of chips (new/used cars) available at this time. The volume is about 150% of average volume today. In March 2020 the stock had a low of $6.35 (pandemic)...It hit a high of $122.65 today. So how much of this is a squeeze and how much of this is a "buy on news"...??
    murray t turtle likes this.
  2. %%
    Frankly does not look like a short squeeze;
    1999 killed most that shorted that kind of uptrend/LOL.
    Good 52 week uptrend; 222 % YTD. Most short stuff going down or uptrend afkes CAR doesnt seem to be either.
    Looks like a good 52week uptrend all year/not a predicition+ not a stock tip. Looks good on daily weekly 52 week chart.................................................
    fan27 likes this.
  3. SunTrader


    Likely squeeze. Chip shortage has been with us for well over a year.
  4. fan27


    Breakout from nice cup and handle pattern. This stock is going higher.

  5. Matt_ORATS

    Matt_ORATS Sponsor

    It doesn't look like a short squeeze as you would normally see the implied hard to borrow (our Borrow 30 day) spike.

    For example, here is a list of high borrow rates with confidence > 68% (our measure of options market quality):

    Borrow 30 day interpolates the solved borrow rates from each expiration to 30 days and I also show the 2 years to expiration borrow.

    Here's HOOD very hard to borrow:

    Now this is a short squeeze in BBIG:

    It looks like the borrow might be creeping up again.
    SunTrader likes this.
  6. maxinger


    This is how I'd analyze in a non-short-squeeze way.

    big picture - uptrend started in mid-2020.

    on 23 Sep 2021, the price broke the 95 resistance level.
    it continued its up journey for 2 more days ( 3 white soldiers or whatever).
    traders/investors are now taking some profits.
  7. Cabin111


    Really...This is not a squeeze?? Like it's been said...The chip shortage has been here for over a year!! This is value investing??

    Avis Budget Group (CAR)
    138.20 +11.75 (+9.29%) 10/08/21 [NASDAQ]
    xandman likes this.
  8. Matt_ORATS

    Matt_ORATS Sponsor

    It still does not look like a short squeeze from the implied borrow rate.
  9. Cabin111


    Just getting this straight...You are saying there are not a lot of naked positions out there for the Oct 15 2021?
  10. Cabin111


    Well I did a covered call on my 200 shares of CAR today. Sell to open May 22 $195. I got $11.30 per share for it...$2,260. for this option. Stock hit a new high of $143.89 today.

    Again, I can't tell if people are covering, or buying for future profits from the chip/car shortage. Either way, I wanted to take a little something off the table in case there is a major fall in the price. I didn't want to sell 100 shares because of inflation concerns...So I went this route. Just me...
    #10     Oct 11, 2021